FCA still considering “complex” P2P cases for authorisation

THE FINANCIAL Conduct Authority (FCA) has authorised the majority of consumer credit firms regulated under the Office of Fair Trading but says it is still facing more complex cases, including peer-to-peer platforms.

The City watchdog’s annual report for 2016 showed 99.3 per cent of consumer credit businesses with interim permissions had been transferred to full authorisation, but some, including P2P lenders, are still being considered.

“We will conclude the small number of outstanding applications from interim permission consumer credit firms during 2017,” the report said.

“These applications are more complex cases which take us longer to determine and include commercial debt management firms and peer-to-peer platforms.”

Read more: FCA applications have cost the P2P sector up to £2m

In recent weeks established peer-to-peer brands such as Zopa and Funding Circle have received full authorisation, leaving RateSetter as the last of the “big three” still waiting.

Outlining plans for this year, the report reiterated the watchdog’s intention to consult on the regulatory framework for crowdfunding following a call for input and interim feedback last year.

“We wanted to better understand recent developments in the loan-based crowdfunding market which currently pose some risks to our objectives, including regulatory arbitrage and the risk that investors do not fully understand the products offered,” the report said.

“We plan to consult on changes to our rules to ensure the regulatory framework for crowdfunding remains proportionate while providing adequate investor protection and allowing for innovation and growth in the market.”

Read more: FCA to toughen rules on P2P